The Lowdown On Errors & Omissions Insurance
There are so many different types of insurance available today, it can be hard to figure out what your business needs and what it can do without. Errors & omissions insurance might seem like a sideline insurance that you won’t ever use. After all, you’re likely careful and you don’t mess up easily. However, everyone makes mistakes. For businesses that can have huge repercussions with even minor mistakes, this type of insurance is vital.
What Is E&O Insurance?
Errors & omission insurance covers a company or a person if a client or customer holds them responsible for a service they provided or failed to provide. This type of insurance is also referred to as malpractice insurance when speaking about doctors, dentists, and other medical practitioners. Lawyers, accountants, contractors, and others in that realm call it professional liability. Whatever you want to label it, this insurance covers errors or omissions made, or things that clients perceive you made. The policies generally cover judgments or settlements as well as defense costs. Even if the allegations don’t turn out to be true, the company or individual might have to pay thousands of dollars for a lawyer to defend them in the lawsuit. E&O Insurance covers the details involved with the case, whether you win or lose.
Who Needs E&O Insurance?
There are many different professions that are known for having this type of insurance, such as doctors, accountants, lawyers, engineers, architects, and more, but there are many other companies that feature a similar policy. Wedding planners, advertising agencies, commercial printers, and others can benefit from the coverage. Any business that provides a service to a client could have a lawsuit brought against them at some point. While E&O insurance isn’t required for every business, those who don’t have it need to think about what would happen if a service wasn’t done right or on time and a client brings it to the court.
Getting E&O Insurance
Since everyone makes mistakes, and some of those mistakes can be vital, many companies could benefit from having the policy. Before the company is exposed to an expensive lawsuit to defend their name or a settlement they can’t afford to pay, it is a good idea to look into this type of insurance. Not purchasing a policy is actually the biggest risk. Businesses are keeping their fingers crossed, hoping that nothing big goes wrong. And if it does, they have to hope that no one will notice and bring litigation to their doorstep. At fault or not, going to court is time consuming and expensive and E&O policies can help.
Figuring Out Error & Omissions Insurance Costs
The costs of these policies can vary a great deal depending on the type of business or profession the company or individual is in. Medical malpractice can see huge payouts whereas a wedding planner, even making a large mistake, won’t cause the insurance to pay nearly as much. The type of business or profession is considered, among other items. Contact Nickerson Insurance Services to get a free quote for your situation.